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It continues to do fairly well. Last quarter they had a hiccup in that their growth slowed down a little. In the last quarter they talked about a large contract that went cold on them. Everyone thought that was Samsung (SMSN-LSE). He has not seen much visibility around that. He would like to see that acceleration again in their numbers. Longer term this company has tremendous growth opportunities. They will probably be taken out by one of their competitors.
It has been a past pick and he continues to like it. It will take some time. They are integrating push to talk over cellular for fleets. The devices are antiquated and they are bringing them into the 21st century. They need certification on some of the networks in the States. Longer term he continues to likes it and continues to add on weakness.
They have a number of products in the states that are infused with cannabis in markets where it is legal. He is a big believer that the movement in this business is also about the medical and delivery systems and this company is all about it. Keep it on the radar. Watch for more States to legalize it.
There is always criticism of growth by acquisition, but it is fairly normal as part of a lot of larger companies’ strategy. They can increase rents higher than inflation for organic growth. Since the new management has taken over they have had both growth strategies. This is really the only Canadian example of the storage business, which is high growth in the US. As numbers come out you will see both sources of growth and the market will see it.
There have been a lot of moving parts on this one. They have had a long track record of doing this. They did fairly well as a private company. They have a diversified portfolio but some partners have run into financial difficulties. Their due diligence is being questioned. It has been staying in a trading range. He thinks you will see resolution of a couple of outstanding issues plus they will add a couple of new partners in the near term. Longer term it is a business with a nice dividend.
They started with Bluetooth asset trackers and are moving into cellular asset trackers. It has been constrained in the past by battery power. They came up with lower power chips for both. It is about fleet tracking as well as tool tracking. They are working in Japan, Canada, and seeking certification with two US networks. The networks want this desperately so they can get a whole new customer base.
It was the ‘go-go’ stock a few years ago and now the one everyone hates. He gets a lot of calls. A lot of people are frustrated as they go through restructuring. They feel they are very close to getting approval to spin the company off into two. He focuses on pure numbers. They are fantastic. They grew their business to make up for the healthcare benefits cuts previously. The principles there now have a lot of stock that they bought at higher prices. They are growing organically. People need to be patient during the restructuring.
This is one that is a really exciting, growing segment of the grocery store. They are organically and niche focused. They are rolling up smaller players. This will eventually get bought out by a consumer packaging company. You want to see them showing progress at integrating the acquisitions they make. He thinks the stock will go higher long term but may be a trading opportunity also.
(A Top Pick Oct 26/16, Up 20%) They now have a financial company who provide super high rate loans to people who can’t get them anywhere else. They know they will have a big default rate and that is worked into their business. They just went into Quebec and are seeing hug expansion there.
(A Top Pick Oct 26/16, Down 10%) It is a function of a few things. There is the whole overhang of the pipelines; ALA-T owns a significant portion and it looks like their relationship has been severed and that ALA-T may sell that piece off. This one is going to continue to grow. He thinks the management team will eventually sell to a bigger company. Longer term it will continue to grow.
It has been a bit of a disappointment in the how they have executed. They are in the rehabilitation business, acquiring centers. They were driving everything out of the head office and each center was not that profitable. Now each manager is incentivized with how profitable they are. We have to see how this works. He has it on his radar screen.
He would not buy it. He would want to see it stabilize more, considering the short report. He may have to buy it back higher but he would want to know they are executing. It has been unbelievable. It is volatile without short reports. You can trade it around using a tool. Once their numbers come out the stock tends to gap up. There will be a cloud over them until their next quarterly numbers come out.
He is excited about the cannabis industry worldwide. They have been bringing on patients faster than anyone else. It will be one of the largest cannabis greenhouses in the world. He wants to see them execute on everything they said they would, going from a small facility to a large one. See his top picks today.
Market. We have seen the economy doing well and some of the stock markets breaking out. He looks for relative strength in both technical and economic indicators. The economic indicators were good all year but the market started to lose strength. He is more or less fully invested right now. It is stock specific in small caps. The index is now starting to show strength compared to larger caps. We are probably at the start of a period where small caps will outperform.